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Blueprint Medicines (BPMC) Down 9.1% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Blueprint Medicines (BPMC - Free Report) . Shares have lost about 9.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Blueprint Medicines due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Blueprint Medicines Q4 Loss Widens, Revenues Top Mark

Blueprint Medicines incurred an adjusted loss of 99 cents per share (excluding a one-time payment of $260 million incurred for the acquisition of Lengo Therapeutics) for fourth-quarter 2021, wider than the Zacks Consensus Estimate of a loss of 71 cents. The company reported a loss of $1.53 per share in the year-ago quarter.

On a reported basis, the company incurred a loss of $5.40 per share in the fourth quarter of 2021.

However, quarterly revenues of $107 million beat the Zacks Consensus Estimate of $104 million. Sales were significantly up from the year-ago figure of $34.1 million.

Quarter in Detail

Since the company has transferred the responsibilities of booking U.S. product sales of Gavreto to Roche on Jul 1, 2021, Blueprint Medicines only records the share of profit and loss for the drug in its financial results.

The company’s total revenues of $107 million comprised net product revenues from Ayvakit sales and collaboration revenues. It reported net product revenues of $20 million. Collaboration revenues were $87 million, primarily generated from the agreements with CStone Pharmaceutical and Roche.

The company reported a collaboration loss sharing of $4.5 million for Gavreto during the quarter.

Research and development expenses were $356.9 million, significantly up from the year-ago figure. Research and development expenses included $260 million, which were incurred to complete the acquisition of Lengo Therapeutics in December 2021. This was the primary reason for the year-over-year surge in expenses.

Selling, general and administrative expenses were $54.2 million, up 27.5% year over year on account of higher costs related to the commercialization of Ayvakit.

Blueprint Medicines had cash, cash equivalents, and investments worth $1.03 billion as of Dec 31, 2021, lower than $1.29 billion on Sep 30, 2021.

2022 Guidance

Blueprint Medicines anticipates total revenues for full-year 2022 in the range of $180-$200 million.Net Ayvakit revenues are expected to be $115-$130 million in 2022.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Blueprint Medicines has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Blueprint Medicines has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


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